Just Energy? Designing for Ethical Acceptability in Smart Grids

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Just Energy? Designing for Ethical Acceptability in Smart Grids

Milchram, C. DOI 10.4233/uuid:26655b53-2aab-4fa2-943d-943ebd037c5e Publication date 2020 Document Version Final published version Citation (APA)

Milchram, C. (2020). Just Energy? Designing for Ethical Acceptability in Smart Grids. https://doi.org/10.4233/uuid:26655b53-2aab-4fa2-943d-943ebd037c5e

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Designing for Ethical A

ccept

ability in Smart Grids

Christine Milchram

Just Energy?

Designing for Ethical

Acceptability in Smart Grids

Christine Milchram

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546318-L-bw-Milchram 546318-L-bw-Milchram 546318-L-bw-Milchram 546318-L-bw-Milchram Processed on: 22-9-2020 Processed on: 22-9-2020 Processed on: 22-9-2020

Processed on: 22-9-2020 PDF page: 1PDF page: 1PDF page: 1PDF page: 1

Just Energy?

Designing for Ethical Acceptability in Smart Grids

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Just Energy?

Designing for Ethical Acceptability in Smart Grids

Dissertation

for the purpose of obtaining the degree of doctor at Delft University of Technology

by the authority of the Rector Magnificus, Prof.dr.ir. T.H.J.J. van der Hagen chair of the Board of Doctorates

to be defended publicly on Monday 5th_{of October 2020 at 15:00}

by

Christine MILCHRAM

Master of Science in International Business Administration University of Vienna, Austria

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Just Energy?

Designing for Ethical Acceptability in Smart Grids

Dissertation

for the purpose of obtaining the degree of doctor at Delft University of Technology

by the authority of the Rector Magnificus, Prof.dr.ir. T.H.J.J. van der Hagen chair of the Board of Doctorates

to be defended publicly on Monday 5th_{of October 2020 at 15:00}

by

Christine MILCHRAM

Master of Science in International Business Administration University of Vienna, Austria

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This dissertation has been approved by the promotors. Composition of the doctoral committee:

Rector Magnificus Chairperson

Prof.dr. R. Künneke Delft University of Technology, promotor Prof.dr.dr. R. Hillerbrand Karlsruhe Institute of Technology, promotor Dr. G. van de Kaa Delft University of Technology, promotor Prof.dr.mr.ir. N. Doorn Delft University of Technology, promotor Independent members:

Prof.dr. P. Palensky Delft University of Technology Prof.dr. F. Alkemade Eindhoven University of Technology Prof.dr. D. McCauley Erasmus University Rotterdam

Dr. M. Arentsen University of Twente

Prof.dr. I. van de Poel Delft University of Technology, reserve member

Dissertation

Just Energy? Designing for Ethical Acceptability in Smart Grids Department for Values, Technology and Innovation

Faculty of Technology, Policy and Management Delft University of Technology

The Netherlands

This work was funded by the Netherlands Organization for Scientific Research (NWO).

ISBN978-94-6384-163-4

This dissertation is offered under the Creative Commons Attribution-NonCommercial-NoDerivs License (https://creativecommons.org/licenses/by-nc-nd/4.0/).

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This dissertation has been approved by the promotors. Composition of the doctoral committee:

Rector Magnificus Chairperson

Prof.dr. R. Künneke Delft University of Technology, promotor Prof.dr.dr. R. Hillerbrand Karlsruhe Institute of Technology, promotor Dr. G. van de Kaa Delft University of Technology, promotor Prof.dr.mr.ir. N. Doorn Delft University of Technology, promotor Independent members:

Prof.dr. P. Palensky Delft University of Technology Prof.dr. F. Alkemade Eindhoven University of Technology Prof.dr. D. McCauley Erasmus University Rotterdam

Dr. M. Arentsen University of Twente

Prof.dr. I. van de Poel Delft University of Technology, reserve member

Dissertation

Just Energy? Designing for Ethical Acceptability in Smart Grids Department for Values, Technology and Innovation

Faculty of Technology, Policy and Management Delft University of Technology

The Netherlands

This work was funded by the Netherlands Organization for Scientific Research (NWO).

ISBN978-94-6384-163-4

This dissertation is offered under the Creative Commons Attribution-NonCommercial-NoDerivs License (https://creativecommons.org/licenses/by-nc-nd/4.0/).

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vii

Acknowledgements

When I started this PhD, my main motivation was to work in a content- and quality-driven manner on sustainability transitions in infrastructures such as the electricity or transport sector. In hindsight it is fair to say that I wasn’t fully aware of what I was getting myself into. The joy of content-related, detailed work was definitely challenged by the reality of working for four years in the individualistic and persistent manner a PhD process demands. Yet I also gained so much more than expected; personal growth, and most importantly the profound relationships and friendships formed during these years. Lots of people accompanied and supported me throughout, and I am grateful to each and every one of them.

First of all I would like to thank my promotors. Some thought that having four promotors would be a couple too many, but I wouldn’t be where I am had it been otherwise. Rolf, thank you for your trust. You were always available, making time for discussions and feedback. Rafaela, for your enthusiasm and thought-provoking comments that always made me learn, as well as for introducing me to the inspiring research environment at ITAS. Geerten, thank you for helping me navigate the depths of the academic publishing process and pushing me to write journal articles early on. Neelke, thank you for joining and staying in my supervisory committee. You are a role model in leadership, supervision, and research; thank you for convincing me that interdisciplinarity is not only okay, but much needed.

At TU Delft, I was fortunate to become part of the truly diverse group of people at the TPM faculty. Jan Anne, I was extremely lucky to have you as a mentor. Thank you for your pragmatic advice, support, and validation. Tristan, thank you for our collaboration in trying to understand our project and in forming our own lines of research, as well as on conference and workshop organizations. Daniel, thank you for your insights into the intricacies of TPM, and the warmth of the Tyrolean dialect. To all the members of the Friday Seminar and the PhD workshops on Elinor Ostrom’s work, especially Aad, Marloes, Theo, Kas, Richard, John, Jaco, Martijn, Sander, Esther, Rutger, Robert, Thomas, and Amineh: I’m grateful for our productive discussions, your feedback, and happy to have shared many a treat!

A special thanks also to all colleagues in the ETI section. Cees, Roland, Robert, Laurens, Enno, Zenlin, and Claudia, thank you for your support, cups of coffee, and jokes. They were a relief whenever I started taking everything too seriously. Suzanne, your warmth and joy make a big difference in the section. Thank you for your thoughtfulness and commitment to overcome all administrative hurdles.

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Acknowledgements

When I started this PhD, my main motivation was to work in a content- and quality-driven manner on sustainability transitions in infrastructures such as the electricity or transport sector. In hindsight it is fair to say that I wasn’t fully aware of what I was getting myself into. The joy of content-related, detailed work was definitely challenged by the reality of working for four years in the individualistic and persistent manner a PhD process demands. Yet I also gained so much more than expected; personal growth, and most importantly the profound relationships and friendships formed during these years. Lots of people accompanied and supported me throughout, and I am grateful to each and every one of them.

First of all I would like to thank my promotors. Some thought that having four promotors would be a couple too many, but I wouldn’t be where I am had it been otherwise. Rolf, thank you for your trust. You were always available, making time for discussions and feedback. Rafaela, for your enthusiasm and thought-provoking comments that always made me learn, as well as for introducing me to the inspiring research environment at ITAS. Geerten, thank you for helping me navigate the depths of the academic publishing process and pushing me to write journal articles early on. Neelke, thank you for joining and staying in my supervisory committee. You are a role model in leadership, supervision, and research; thank you for convincing me that interdisciplinarity is not only okay, but much needed.

At TU Delft, I was fortunate to become part of the truly diverse group of people at the TPM faculty. Jan Anne, I was extremely lucky to have you as a mentor. Thank you for your pragmatic advice, support, and validation. Tristan, thank you for our collaboration in trying to understand our project and in forming our own lines of research, as well as on conference and workshop organizations. Daniel, thank you for your insights into the intricacies of TPM, and the warmth of the Tyrolean dialect. To all the members of the Friday Seminar and the PhD workshops on Elinor Ostrom’s work, especially Aad, Marloes, Theo, Kas, Richard, John, Jaco, Martijn, Sander, Esther, Rutger, Robert, Thomas, and Amineh: I’m grateful for our productive discussions, your feedback, and happy to have shared many a treat!

A special thanks also to all colleagues in the ETI section. Cees, Roland, Robert, Laurens, Enno, Zenlin, and Claudia, thank you for your support, cups of coffee, and jokes. They were a relief whenever I started taking everything too seriously. Suzanne, your warmth and joy make a big difference in the section. Thank you for your thoughtfulness and commitment to overcome all administrative hurdles.

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I am grateful to have met so many inspiring researchers and personalities across the entire faculty. To the members of the philosophy section and the ‘Let’s get ethical’ peer group – Ibo, Sabine, Jeroen, Behnam, Udo, Peter, Nicole, Taylor, Georgy, Anna, Klara, Laura, Jonas, Scott, Thijs, Tom, and Shuhong – your feedback was incredibly helpful in dealing with the complexities of researching values. I also shared many research interests with members of the O&G section; Maria, Toyah, Elisabeth, and Shannon, thank you for being available to discuss research and experience on energy systems governance, and for your willingness to share strategies for overcoming mental challenges during a PhD process. Nina, thank you for your joyfulness and your clarity of thought; you always made me smile. To the EPA teaching staff, particularly Bert and Bertien, thank you for sharing the office space in The Hague, and for your valuable advice on academic life.

I had the privilege to work with several researchers outside of TU Delft. Carolin, Holger, Jens, Kirsten, and Johanna, thank you for showing me that research can be a collaborative effort! A special thank you to Carolin, Holger, and Sandra in Jülich and Jens, Michael, Giovanni, and Witold in Karlsruhe for your warm welcome.

To everyone who I met during my empirical work and the members of our project’s valorization committee, thank you for sharing your experiences so openly, and for reminding me that my research is related to reality after all.

I would also like to express my gratitude towards my former colleagues. The professional attitude, people-oriented work ethic, and constructive feedback culture I learned while working with Accenture’s sustainability team was an excellent basis to build a professional life on. Samanthi, I am very happy that we reconnected and am indebted to you for suggesting our joint virtual writing sessions. Our conversations during these times were always a source of motivation and joy. My friends in the Netherlands, meeting you made a world of a difference for how much I felt at home here. Fabio, Vladimir, Rijk, and Ben, thank you for our numerous conversations, lunches, walks, coffee breaks, and joint working sessions.The time spent with you was always inspirational, full of intellectual and personal insights, joy and laughter. I will never forget your surprise. Indushree, thank you for your generosity, adventurousness, and for instilling in me a deep affinity for Indian culture and cuisine. Erin and Brian, thank you for the time spent cooking, eating, drinking, talking, and traveling; for your warmth and for always opening your house to us. Never having to explain what I do provided much needed breaks from academic life. Finally, I would like to thank my family. I am fortunate to have grown up amongst you. My parents, Eva and Gerhard, thank you for devoting everything to your children and for teaching us to be honest, trusting, and open human beings who

ix always see the best in others. I could not have become who I am without your safety net. Johannes, Maria, Markus, Caroline, in big families relationships always change; I am incredibly grateful that no matter what, we always find each other. Michael, you are my home. I deeply appreciate how you have supported and kept me grounded in these past years. Thank you so much.

Christine Milchram, August 2020

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I am grateful to have met so many inspiring researchers and personalities across the entire faculty. To the members of the philosophy section and the ‘Let’s get ethical’ peer group – Ibo, Sabine, Jeroen, Behnam, Udo, Peter, Nicole, Taylor, Georgy, Anna, Klara, Laura, Jonas, Scott, Thijs, Tom, and Shuhong – your feedback was incredibly helpful in dealing with the complexities of researching values. I also shared many research interests with members of the O&G section; Maria, Toyah, Elisabeth, and Shannon, thank you for being available to discuss research and experience on energy systems governance, and for your willingness to share strategies for overcoming mental challenges during a PhD process. Nina, thank you for your joyfulness and your clarity of thought; you always made me smile. To the EPA teaching staff, particularly Bert and Bertien, thank you for sharing the office space in The Hague, and for your valuable advice on academic life.

I had the privilege to work with several researchers outside of TU Delft. Carolin, Holger, Jens, Kirsten, and Johanna, thank you for showing me that research can be a collaborative effort! A special thank you to Carolin, Holger, and Sandra in Jülich and Jens, Michael, Giovanni, and Witold in Karlsruhe for your warm welcome.

To everyone who I met during my empirical work and the members of our project’s valorization committee, thank you for sharing your experiences so openly, and for reminding me that my research is related to reality after all.

I would also like to express my gratitude towards my former colleagues. The professional attitude, people-oriented work ethic, and constructive feedback culture I learned while working with Accenture’s sustainability team was an excellent basis to build a professional life on. Samanthi, I am very happy that we reconnected and am indebted to you for suggesting our joint virtual writing sessions. Our conversations during these times were always a source of motivation and joy. My friends in the Netherlands, meeting you made a world of a difference for how much I felt at home here. Fabio, Vladimir, Rijk, and Ben, thank you for our numerous conversations, lunches, walks, coffee breaks, and joint working sessions.The time spent with you was always inspirational, full of intellectual and personal insights, joy and laughter. I will never forget your surprise. Indushree, thank you for your generosity, adventurousness, and for instilling in me a deep affinity for Indian culture and cuisine. Erin and Brian, thank you for the time spent cooking, eating, drinking, talking, and traveling; for your warmth and for always opening your house to us. Never having to explain what I do provided much needed breaks from academic life. Finally, I would like to thank my family. I am fortunate to have grown up amongst you. My parents, Eva and Gerhard, thank you for devoting everything to your children and for teaching us to be honest, trusting, and open human beings who

ix always see the best in others. I could not have become who I am without your safety net. Johannes, Maria, Markus, Caroline, in big families relationships always change; I am incredibly grateful that no matter what, we always find each other. Michael, you are my home. I deeply appreciate how you have supported and kept me grounded in these past years. Thank you so much.

Christine Milchram, August 2020

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Figures

Figure 1-1: Schematic overview of a smart grid system... 31

Figure 1-2: Dissertation outline ... 39

Figure 2-1: Institutional Analysis and Development (IAD) Framework ... 47

Figure 2-2: IAD framework extended by social learning ... 52

Figure 2-3: Three-step analytical approach ... 57

Figure 2-4: IAD framework extended by social learning, highlighting the role of values ... 64

Figure 3-1: Flow diagram for systematic literature review ... 79

Figure 4-1: Smart grid development in the Netherlands ... 112

Figure 4-2: Smart grid development timeline in the UK ... 114

Figure 5-2: Justice evaluations across cases ... 155

Figure 5-3: Evaluations of distributive justice across cases ... 156

Figure 5-4: Evaluations of justice as recognition across cases ... 159

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4.3 Design for replication and expansion ... 165

5 Conclusions and policy implications ... 166

Appendix A. Interview guidelines ... 169

Appendix B. Overview of design choices relevant for energy justice across cases .. 171

CHAPTER 6: CONCLUSION ... 175

1 Summary of findings ... 177

2 Theoretical implications and future research ... 185

2.1 The relationship between a system’s acceptability and acceptance ... 185

2.2 From value perceptions to indicators ... 187

2.3 Justice, trust, and acceptance ... 189

2.4 Interrelated energy justice dimensions ... 190

3 Recommendations for smart grid designers ... 192

4 Policy implications ... 195

4.1 Smart metering roll-out ... 195

4.2 Funding of smart grid pilot projects ... 196

4.3 Electricity sector regulation ... 197

5 A personal reflection on the acceptability-acceptance divide ... 199

References ... 203

About the author ... 229

List of publications ... 231

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Figures

Figure 1-2: Dissertation outline ... 39

Figure 2-1: Institutional Analysis and Development (IAD) Framework ... 47

Figure 2-2: IAD framework extended by social learning ... 52

Figure 2-3: Three-step analytical approach ... 57

Figure 2-4: IAD framework extended by social learning, highlighting the role of values ... 64

Figure 3-1: Flow diagram for systematic literature review ... 79

Figure 4-1: Smart grid development in the Netherlands ... 112

Figure 4-2: Smart grid development timeline in the UK ... 114

Figure 5-2: Justice evaluations across cases ... 155

Figure 5-3: Evaluations of distributive justice across cases ... 156

Figure 5-4: Evaluations of justice as recognition across cases ... 159

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Tables

Table 2-1: Definitions of the elements of the IAD framework extended by social

learning ... 52

Table 3-1: Overview of factors for technology acceptance/adoption. ... 75

Table 3-2: Search queries used in the systematic literature review ... 78

Table 3-3: Values relevant for the acceptance of smart grid technologies ... 81

Table 3-4: Overview of articles considering values for smart grid acceptance ... 93

Table 4-1: Dutch newspapers ... 113

Table 4-2: British newspapers ... 114

Table 4-3: Overview of results: Smart grid values reflected in Dutch and British newspapers ... 117

Table 4-4: List of analyzed newspaper articles ... 132

Table 5-1: Evaluation framework for energy justice in smart grids ... 145

Table 5-2: Overview of interviews and interviewees ... 148

Table 5-3: Overview of smart grid set-up in the four cases ... 151

Table 5-4: Overview of results: Design choices influential for justice evaluations . 154 Table 5-5: Design choices relevant for energy justice across cases ... 171

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Summary

Smart grids within the transition to sustainable energy systems

Smart grid systems are widely considered as crucial in the energy transition, because they allow for greater flexibility in bridging temporal gaps between electricity supply and demand in renewable energy systems. To do so, the systems make use of information and communication technologies to measure and monitor supply and demand in real-time, on the basis of which the use of renewable electricity can be optimized. Despite this important role in future renewable energy systems, the introduction of smart grids comes with serious moral repercussions, for example for data privacy and security, autonomy and control, or distributive justice.

This dissertation analyzes the moral implications of smart grid systems, and provides guidance for designers and policymakers on how to address these implications in smart grid technologies and institutions, with the ultimate motive to increase the systems’ ethical acceptability.

Interdisciplinary in nature, the research contributes to value-sensitive design, institutional analysis, and energy justice. It is in line with academic endeavors to enrich energy research with insights from the social sciences and humanities. It thereby adds to a literature that is dominated by technological approaches and presents smart grids as a technical ‘fix’ to make electricity systems more sustainable.

Research design

The main body of this dissertation consists of four papers that, collectively, address the ethical acceptability of smart grids. It combines conceptual insights with empirical investigations. Conceptual investigations draw from ethics of technology, value-sensitive design and theories of justice used in the energy justice literature. Empirical methods involve qualitative content analysis and case study research to understand affected stakeholders’ value conceptions and perceptions of a technology.

The influence of value change on institutional change within the energy transition

Transition processes to low-carbon energy systems are shaped by changes in the institutions (i.e. the “rules of the game” such as legislation and regulation) that govern energy systems. Institutions are influenced by values, normative convictions that can be intersubjectively justified and are worth striving for to realize a good society. Analyses of institutional change should account for this influence, but have been

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Tables

Table 2-1: Definitions of the elements of the IAD framework extended by social

learning ... 52

Table 3-1: Overview of factors for technology acceptance/adoption. ... 75

Table 3-2: Search queries used in the systematic literature review ... 78

Table 3-3: Values relevant for the acceptance of smart grid technologies ... 81

Table 3-4: Overview of articles considering values for smart grid acceptance ... 93

Table 4-1: Dutch newspapers ... 113

Table 4-2: British newspapers ... 114

Table 4-3: Overview of results: Smart grid values reflected in Dutch and British newspapers ... 117

Table 4-4: List of analyzed newspaper articles ... 132

Table 5-1: Evaluation framework for energy justice in smart grids ... 145

Table 5-2: Overview of interviews and interviewees ... 148

Table 5-3: Overview of smart grid set-up in the four cases ... 151

Table 5-4: Overview of results: Design choices influential for justice evaluations . 154 Table 5-5: Design choices relevant for energy justice across cases ... 171

xvii

Summary

Smart grids within the transition to sustainable energy systems

Smart grid systems are widely considered as crucial in the energy transition, because they allow for greater flexibility in bridging temporal gaps between electricity supply and demand in renewable energy systems. To do so, the systems make use of information and communication technologies to measure and monitor supply and demand in real-time, on the basis of which the use of renewable electricity can be optimized. Despite this important role in future renewable energy systems, the introduction of smart grids comes with serious moral repercussions, for example for data privacy and security, autonomy and control, or distributive justice.

This dissertation analyzes the moral implications of smart grid systems, and provides guidance for designers and policymakers on how to address these implications in smart grid technologies and institutions, with the ultimate motive to increase the systems’ ethical acceptability.

Interdisciplinary in nature, the research contributes to value-sensitive design, institutional analysis, and energy justice. It is in line with academic endeavors to enrich energy research with insights from the social sciences and humanities. It thereby adds to a literature that is dominated by technological approaches and presents smart grids as a technical ‘fix’ to make electricity systems more sustainable.

Research design

The main body of this dissertation consists of four papers that, collectively, address the ethical acceptability of smart grids. It combines conceptual insights with empirical investigations. Conceptual investigations draw from ethics of technology, value-sensitive design and theories of justice used in the energy justice literature. Empirical methods involve qualitative content analysis and case study research to understand affected stakeholders’ value conceptions and perceptions of a technology.

The influence of value change on institutional change within the energy transition

Transition processes to low-carbon energy systems are shaped by changes in the institutions (i.e. the “rules of the game” such as legislation and regulation) that govern energy systems. Institutions are influenced by values, normative convictions that can be intersubjectively justified and are worth striving for to realize a good society. Analyses of institutional change should account for this influence, but have been

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hindered by the absence of a structured framework that highlights the role of values in institutional development.

Chapter 2 of this dissertation therefore develops an interdisciplinary framework that explicates how values are embedded in existing infrastructure and institutions, how they shape communities and individual behavior, as well as how value controversies can trigger social learning processes that eventually can result in institutional change. The framework builds on a dynamic Institutional Analysis and Development (IAD) framework and expands it by conceptualizations of values in moral philosophy, institutional economics, and social psychology.

Moral values as factors for social acceptance of smart grid systems

Analyzing the moral implications of smart grid systems through the lens of moral values requires an identification and conceptualization of relevant vales. This includes insight into what values are embedded in different smart grid components (e.g. smart metering, storage, smart home), as well as how these values might influence the acceptance and adoption of smart grids.

Chapter 3 thus identifies a range of relevant values, and does so through a systematic literature review. Environmental sustainability, security of energy supply, and transparency are values underlying the motivations for smart grid development or values which are positively influenced by the technologies (i.e. ‘drivers’). Values which reflect concerns or fear of being negatively impacted by smart grids (i.e. ‘barriers’) are data privacy, data security, (mis)trust, health, justice, and reliability. A range of values partly form drivers and partly barriers to smart grid implementation: these are control, inclusiveness, quality of life, and affordability. Findings indicate that whether smart grids affect these values positively or negatively depends on the detailed technological and regulatory context as well as the way in which users interpret and conceive values.

Implications of smart grids for energy justice

Among the range of relevant smart grid values, justice occupies a special place as an overarching value that is a powerful lens to put neglected social impacts of energy systems on the research and political agendas. Energy justice addresses the question what values and moral frameworks ought to guide the development of energy systems. Despite the aspiration to be a comprehensive framework that covers all aspects of energy systems, the energy justice literature has been limited in understanding the potential implications of digitalization in the electricity system that comes with the introduction of smart grids.

xix Chapter 4 conceptualizes justice in the context of smart grids, analyzing how pro and contra smart grid arguments in the Netherlands and the United Kingdom reveal potential impacts of these systems on justice. Findings show implications for distributive and procedural justice. Most of these are connected to the roll-out of smart metering, which is the dominant topic in the debates in both countries. Positive justice implications, generally speaking, are that smart grids are seen as part of a development towards more democratic and open energy systems, with higher citizen participation and empowerment. Negative justice implications, however, concern the distribution of benefits and harms between consumers and energy companies. Injustices might also arise in the distribution of benefits and costs between different consumer segments, as complex technologies requiring specific knowledge might discriminate towards groups with low IT literacy. Additionally, several aspects of smart grid pilot projects are criticized as unfair: the selection procedures for consumers who participate in these projects; the strong involvement of distribution system operators and experimentation using public money; and the increased reliance on specialized IT knowledge which might shift power from public bodies (e.g. municipalities) to private software companies.

Designing for justice in smart grid pilot projects

Having identified potential positive and negative justice implications, the question remains how to design for justice in real-life implementations of smart grids. Most smart grids are to-date realized in the form of local experiments, which combine for example photovoltaic systems, home or community batteries, and smart metering with software platforms to optimize local (renewable) electricity flows.

Chapter 5 thus analyzes how energy justice becomes embedded in the design of smart grid pilot projects. It compares four projects with respect to the extent to which their design contributes to justice in the distribution of benefits and harms, in the decision-making procedures, and in the equitable recognition of diverse types of end users. Based on the findings, the following recommendations are put forth for designing for justice in similar future systems:

For distributive justice,

- share profits individually or allocate them to the community as a whole depending on individuals having full control over profit achievement or not. - emphasize knowledge sharing from and with other projects.

- collect and use as little personal data as needed. For procedural justice,

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hindered by the absence of a structured framework that highlights the role of values in institutional development.

Chapter 2 of this dissertation therefore develops an interdisciplinary framework that explicates how values are embedded in existing infrastructure and institutions, how they shape communities and individual behavior, as well as how value controversies can trigger social learning processes that eventually can result in institutional change. The framework builds on a dynamic Institutional Analysis and Development (IAD) framework and expands it by conceptualizations of values in moral philosophy, institutional economics, and social psychology.

Moral values as factors for social acceptance of smart grid systems

Analyzing the moral implications of smart grid systems through the lens of moral values requires an identification and conceptualization of relevant vales. This includes insight into what values are embedded in different smart grid components (e.g. smart metering, storage, smart home), as well as how these values might influence the acceptance and adoption of smart grids.

Chapter 3 thus identifies a range of relevant values, and does so through a systematic literature review. Environmental sustainability, security of energy supply, and transparency are values underlying the motivations for smart grid development or values which are positively influenced by the technologies (i.e. ‘drivers’). Values which reflect concerns or fear of being negatively impacted by smart grids (i.e. ‘barriers’) are data privacy, data security, (mis)trust, health, justice, and reliability. A range of values partly form drivers and partly barriers to smart grid implementation: these are control, inclusiveness, quality of life, and affordability. Findings indicate that whether smart grids affect these values positively or negatively depends on the detailed technological and regulatory context as well as the way in which users interpret and conceive values.

Implications of smart grids for energy justice

Among the range of relevant smart grid values, justice occupies a special place as an overarching value that is a powerful lens to put neglected social impacts of energy systems on the research and political agendas. Energy justice addresses the question what values and moral frameworks ought to guide the development of energy systems. Despite the aspiration to be a comprehensive framework that covers all aspects of energy systems, the energy justice literature has been limited in understanding the potential implications of digitalization in the electricity system that comes with the introduction of smart grids.

xix Chapter 4 conceptualizes justice in the context of smart grids, analyzing how pro and contra smart grid arguments in the Netherlands and the United Kingdom reveal potential impacts of these systems on justice. Findings show implications for distributive and procedural justice. Most of these are connected to the roll-out of smart metering, which is the dominant topic in the debates in both countries. Positive justice implications, generally speaking, are that smart grids are seen as part of a development towards more democratic and open energy systems, with higher citizen participation and empowerment. Negative justice implications, however, concern the distribution of benefits and harms between consumers and energy companies. Injustices might also arise in the distribution of benefits and costs between different consumer segments, as complex technologies requiring specific knowledge might discriminate towards groups with low IT literacy. Additionally, several aspects of smart grid pilot projects are criticized as unfair: the selection procedures for consumers who participate in these projects; the strong involvement of distribution system operators and experimentation using public money; and the increased reliance on specialized IT knowledge which might shift power from public bodies (e.g. municipalities) to private software companies.

Designing for justice in smart grid pilot projects

Having identified potential positive and negative justice implications, the question remains how to design for justice in real-life implementations of smart grids. Most smart grids are to-date realized in the form of local experiments, which combine for example photovoltaic systems, home or community batteries, and smart metering with software platforms to optimize local (renewable) electricity flows.

Chapter 5 thus analyzes how energy justice becomes embedded in the design of smart grid pilot projects. It compares four projects with respect to the extent to which their design contributes to justice in the distribution of benefits and harms, in the decision-making procedures, and in the equitable recognition of diverse types of end users. Based on the findings, the following recommendations are put forth for designing for justice in similar future systems:

For distributive justice,

- share profits individually or allocate them to the community as a whole depending on individuals having full control over profit achievement or not. - emphasize knowledge sharing from and with other projects.

- collect and use as little personal data as needed. For procedural justice,

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- give users control to set their own preferences for batteries, smart appliances, and peer-to-peer trading in the app or in-home display.

- make sure that user interfaces are transparent regarding electricity flows and consequences for household electricity costs.

For justice as recognition,

- use a structured selection process for community and participants. - experiment more with people who are not owner-occupiers. - do not require all participants to own solar panels and batteries. - make sure that user interfaces are as easy to use as possible.

Contributions

This dissertation highlights often neglected social and moral aspects of energy systems.

From a theoretical perspective, the research contributes to several fields:

- It expands value-sensitive design from technical artefacts to socio-technical systems.

- It adds a values-perspective to institutional analysis.

- It argues for moral values to be incorporated more explicitly in technology acceptance studies as potential variables that impact user acceptance.

- It broadens existing conceptualizations of energy justice from aspects pertaining to energy supply and use to include implications that are caused by an increased convergence of the energy and ICT sector.

- It increases the practical relevance of energy justice by presenting concrete and actionable design and policy recommendations.

The dissertation has also made a practical contribution, giving recommendations to designers and policymakers on how to address moral implications in smart grid technologies and institutions:

- For smart grid designers, the research provides an inventory of values that should form design goals. It ties relatively abstract values to concrete design features, thus providing the basis for value-sensitive design in practice. - The inventory of values provides goals for policymaking regarding smart grids,

too. The concluding chapter moreover puts forth more specific recommendations for the smart metering roll-out, for funding smart grid pilot projects, and for adjusting electricity regulation such that smart grids are more equitable and inclusive.

xxi

Samenvatting

Intelligente netten en de transitie naar duurzame energiesystemen

In de transitie naar hernieuwbare energiebronnen worden slimme netwerken (zogenaamde ‘smart grids’) algemeen als cruciaal beschouwd. Smart grids bieden de flexibiliteit die noodzakelijk is om tijdelijke verschillen tussen vraag en aanbod van elektriciteit te overbruggen. De systemen maken hiervoor gebruik van informatie- en communicatietechnologieën om vraag en aanbod real-time te meten en te volgen, op basis waarvan het gebruik van duurzame elektriciteit kan worden geoptimaliseerd. Ondanks deze belangrijke rol in toekomstige duurzame energiesystemen, heeft de introductie van smart grids serieuze morele gevolgen, bijvoorbeeld voor de privacy en veiligheid van gegevens, voor de autonomie en controle door gebruikers en distributieve gerechtigheid.

Dit proefschrift analyseert de morele implicaties van smart grid-systemen. Het onder-zoek biedt richtlijnen voor ontwerpers en beleidsmakers om met deze implicaties in smart grid-technologieën en –instituties rekening te houden. Het uiteindelijk doel is de ethische aanvaardbaarheid van de systemen te vergroten.

Het onderzoek is interdisciplinair van aard. Het bouwt voort op en draagt bij aan value-sensitive design, institutional analysis en energy justice. Daarbij sluit het aan bij academische inspanningen om energieonderzoek te verrijken met inzichten uit de sociale en geesteswetenschappen. Het draagt daarmee bij aan een literatuur die gedomineerd wordt door technologische benaderingen en die slimme netten als een technische 'fix' presenteert om elektriciteitssystemen duurzamer te maken.

Onderzoeksopzet

De kern van dit proefschrift bestaat uit vier artikelen die gezamenlijk de ethische aanvaardbaarheid van smart grids behandelen. Het combineert conceptuele inzichten met empirisch onderzoek. Conceptuele onderzoeken putten uit ethics of technology, value-sensitive design en rechtvaardigheidstheorieën die worden gebruikt in de literatuur over energy justice. Empirische methoden omvatten zowel kwalitatieve inhoudsanalyses en casusonderzoek. Beide methoden hebben het doel te begrijpen welke standpunten betrokken stakeholders hebben rondom smart grids en relevante waarden zoals milieuduurzaamheid, privacy, autonomie en recht-vaardigheid.

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- give users control to set their own preferences for batteries, smart appliances, and peer-to-peer trading in the app or in-home display.

- make sure that user interfaces are transparent regarding electricity flows and consequences for household electricity costs.

For justice as recognition,

- use a structured selection process for community and participants. - experiment more with people who are not owner-occupiers. - do not require all participants to own solar panels and batteries. - make sure that user interfaces are as easy to use as possible.

Contributions

This dissertation highlights often neglected social and moral aspects of energy systems.

From a theoretical perspective, the research contributes to several fields:

- It expands value-sensitive design from technical artefacts to socio-technical systems.

- It adds a values-perspective to institutional analysis.

- It argues for moral values to be incorporated more explicitly in technology acceptance studies as potential variables that impact user acceptance.

- It broadens existing conceptualizations of energy justice from aspects pertaining to energy supply and use to include implications that are caused by an increased convergence of the energy and ICT sector.

- It increases the practical relevance of energy justice by presenting concrete and actionable design and policy recommendations.

The dissertation has also made a practical contribution, giving recommendations to designers and policymakers on how to address moral implications in smart grid technologies and institutions:

- For smart grid designers, the research provides an inventory of values that should form design goals. It ties relatively abstract values to concrete design features, thus providing the basis for value-sensitive design in practice. - The inventory of values provides goals for policymaking regarding smart grids,

too. The concluding chapter moreover puts forth more specific recommendations for the smart metering roll-out, for funding smart grid pilot projects, and for adjusting electricity regulation such that smart grids are more equitable and inclusive.

xxi

Samenvatting

Intelligente netten en de transitie naar duurzame energiesystemen

In de transitie naar hernieuwbare energiebronnen worden slimme netwerken (zogenaamde ‘smart grids’) algemeen als cruciaal beschouwd. Smart grids bieden de flexibiliteit die noodzakelijk is om tijdelijke verschillen tussen vraag en aanbod van elektriciteit te overbruggen. De systemen maken hiervoor gebruik van informatie- en communicatietechnologieën om vraag en aanbod real-time te meten en te volgen, op basis waarvan het gebruik van duurzame elektriciteit kan worden geoptimaliseerd. Ondanks deze belangrijke rol in toekomstige duurzame energiesystemen, heeft de introductie van smart grids serieuze morele gevolgen, bijvoorbeeld voor de privacy en veiligheid van gegevens, voor de autonomie en controle door gebruikers en distributieve gerechtigheid.

Dit proefschrift analyseert de morele implicaties van smart grid-systemen. Het onder-zoek biedt richtlijnen voor ontwerpers en beleidsmakers om met deze implicaties in smart grid-technologieën en –instituties rekening te houden. Het uiteindelijk doel is de ethische aanvaardbaarheid van de systemen te vergroten.

Het onderzoek is interdisciplinair van aard. Het bouwt voort op en draagt bij aan value-sensitive design, institutional analysis en energy justice. Daarbij sluit het aan bij academische inspanningen om energieonderzoek te verrijken met inzichten uit de sociale en geesteswetenschappen. Het draagt daarmee bij aan een literatuur die gedomineerd wordt door technologische benaderingen en die slimme netten als een technische 'fix' presenteert om elektriciteitssystemen duurzamer te maken.

Onderzoeksopzet

De kern van dit proefschrift bestaat uit vier artikelen die gezamenlijk de ethische aanvaardbaarheid van smart grids behandelen. Het combineert conceptuele inzichten met empirisch onderzoek. Conceptuele onderzoeken putten uit ethics of technology, value-sensitive design en rechtvaardigheidstheorieën die worden gebruikt in de literatuur over energy justice. Empirische methoden omvatten zowel kwalitatieve inhoudsanalyses en casusonderzoek. Beide methoden hebben het doel te begrijpen welke standpunten betrokken stakeholders hebben rondom smart grids en relevante waarden zoals milieuduurzaamheid, privacy, autonomie en recht-vaardigheid.

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xxii

De invloed van waardeverandering op institutionele verandering binnen de energietransitie

De transitie naar koolstofarme energiesystemen wordt gevormd door veranderingen in de instituties (d.w.z. de "spelregels" zoals wet- en regelgeving) die de energiesystemen besturen. Instituties worden beïnvloed door waarden. Waarden zijn normatieve overtuigingen die intersubjectief worden gerechtvaardigd en die het waard zijn om na te streven teneinde een goede samenleving te realiseren. Analyses van institutionele verandering zouden de invloed van waarden moeten verklaren, maar er ontbreekt een gestructureerd kader dat hun rol in institutionele ontwikkeling benadrukt.

Hoofdstuk 2 van dit proefschrift ontwikkelt daarom een interdisciplinair raamwerk dat uitlegt hoe waarden zijn ingebed in de bestaande infrastructuur en instituties, hoe ze gemeenschappen en individueel gedrag vormen, en hoe waarde conflicten sociale leerprocessen kunnen prikkelen die uiteindelijk kunnen resulteren in institutionele verandering. Het raamwerk bouwt voort op het dynamische Institutional Analysis and Development raamwerk en breidt het uit met conceptualisaties van waarden in moraalfilosofie, institutionele economie en sociale psychologie.

Morele waarden als factoren voor sociale acceptatie van smart grids

Het analyseren van de morele implicaties van smart grid-systemen door de lens van morele waarden vereist een identificatie en conceptualisering van relevante waarden. Dit omvat het verkrijgen van inzicht in welke waarden zijn ingebed in verschillende smart grid-componenten (bijvoorbeeld slimme meter, opslag, smart home), evenals inzicht in hoe deze waarden de acceptatie en adoptie van smart grids kunnen beïnvloeden.

Hoofdstuk 3 identificeert dus een reeks relevante waarden, en doet dit door middel van een systematisch literatuuronderzoek. De waarden milieuduurzaamheid, continuïteit van de energievoorziening en transparantie motiveren de ontwikkeling van smart grids of worden positief beïnvloed door de technologieën (d.w.z. ‘drijfveren’). De waarden privacy, gegevensbeveiliging, wantrouwen, gezondheid, gerechtigheid en betrouwbaarheid reflecteren zorgen en angsten rondom smart grids (d.w.z. ‘barrières’). Andere waarden vormen deels drijfveren en deels barrières voor de implementatie van de systemen: controle, inclusiviteit, levenskwaliteit en betaalbaarheid. De vraag of smart grids deze waarden positief of negatief beïnvloeden hangt af van de precieze technologische en regelgevende context en van de manier waarop gebruikers waarden interpreteren en bedenken.

xxiii

Implicaties van smart grids voor rechtvaardigheid

Binnen het bereik van relevante smart grid-waarden neemt rechtvaardigheid een speciale plaats in als een overkoepelende waarde die een krachtige lens is om onder-vertegenwoordigde sociale effecten van energiesystemen op de onderzoeks- en politieke agenda's te zetten. Daarom is het raamwerk van energy justice voorgesteld als een alomvattend raamwerk om morele en sociale implicaties van energiesystemen te analyseren, met nadruk op de vraag welke waarden en morele kaders de ontwikkeling van energiesystemen zouden moeten sturen. De literatuur over energy justice bood echter een beperkt begrip van de mogelijke implicaties van digitalisering in het elektriciteitssysteem door smart grids.

Hoofdstuk 4 geeft een beeld van rechtvaardigheid in de context van smart grids, waarbij wordt geanalyseerd hoe voor- en tegenargumenten voor smart grids in Nederland en het Verenigd Koninkrijk mogelijke effecten van deze systemen op rechtvaardigheid identificeren. De bevindingen hebben implicaties voor distributieve en procedurele rechtvaardigheid. De meeste hiervan houden verband met de uitrol van slimme meters, wat het dominante onderwerp is in het debat in beide landen. Een bevinding met een potentieel positief effect op rechtvaardigheid is dat smart grids worden gezien als onderdeel van een ontwikkeling naar meer democratische en open energiesystemen, met een grotere burgerparticipatie en empowerment. Negatieve rechtvaardigheidsimplicaties hebben betrekking op de verdeling van voor- en nadelen tussen consumenten en energiebedrijven. Er kan ook onrechtvaardigheid ontstaan in de verdeling van kosten en baten over verschillende consumentensegmenten. Deze complexe technologieën vereisen specifieke kennis en kunnen daardoor discrimineren ten opzichte van groepen met weinig ICT kennis. Bovendien worden verschillende aspecten van proefprojecten voor slimme netten bekritiseerd als oneerlijk: de selectieprocedures voor consumenten die aan deze projecten deelnemen; de sterke betrokkenheid van distributienetbeheerders en experimenten met overheidsgeld; en de toegenomen afhankelijkheid van gespecialiseerde ICT-kennis die de macht zou kunnen verschuiven van overheidsinstanties (bijv. gemeenten) naar particuliere softwarebedrijven.

Design for justice in proefprojecten voor smart grids

Nu we de potentiële positieve en negatieve implicaties voor rechtvaardigheid hebben geïdentificeerd, blijft de vraag staan hoe we de daadwerkelijke implementatie van smart grids rechtvaardig organiseren. De meeste smart grids worden tot op heden gerealiseerd in de vorm van lokale experimenten. In deze worden technologieën zoals fotovoltaïsche systemen, thuis- of gemeenschapsbatterijen en slimme meters

Just Energy? Designing for Ethical Acceptability in Smart Grids